Harmonic Takes Small Step Ahead

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Continued softness in cable-equipment sales kept a lid on Harmonic Inc.'s
ability to match last year's second-quarter revenue in earnings the company
released Thursday.

The company posted revenue of $41.7 million in the second quarter -- a slight
increase from the first quarter's $37 million, but still below the year-ago
figure of $56.3 million.

"Although our customers remain generally cautious about capital commitments,
we are seeing targeted expenditures in areas such as video-on-demand in cable
and local channel services in the satellite market," chairman and CEO Anthony
Ley said.

The company's digital-headend division posted net sales of $27.1 million, up
from the previous quarter's $24 million, primarily driven by narrowcast gateway
sales for VOD. Harmonic’s fiber-optic division also posted a slight revenue
rise.

The company's overall net loss for the quarter was $11.7 million compared
with a net loss of $11.1 million last year. The loss included $3.5 million in
charges related to an inventory-credit issue and a $2.7 million settlement with
a Tennessee utility company.

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